THE UNION DUTIES OF EXCISE (DISTRIBUTION) ACT, 1979 
_______ 

ARRANGEMENT OF SECTIONS 
______ 

SECTIONS 

1.  Short title and commencement. 
2.  Definition. 
3.  Payment to States of sums equivalent to a part of the net proceeds of Union duties of excise and 

distribution of sums among them. 

4.  Payment to be charged on the Consolidated Fund of India. 
5.  Power to make rules. 
6.  Repeal. 

1 

 
 
 
 
THE UNION DUTIES OF EXCISE (DISTRIBUTION) ACT, 1979 

ACT NO. 24 OF 1979 

[20th May, 1979.] 

An Act to provide for the payment out of the Consolidated Fund of India of sums equivalent to a 
part  of  the  net  proceeds  of  certain  Union  duties  of  excise  to  the  States  to  which  the  law 
imposing  the  duty  extends  and  for  the  distribution  of  those  sums  among  those  States  in 
accordance with the principles recommended by the Finance Commission in its1[report dated 
the 25th day of November, 1994]. 

BE it enacted by Parliament in the Thirtieth Year of the Republic of India as follows:— 

1.  Short  title  and  commencement.—(1)  This  Act  may  be  called  the  Union  Duties  of  Excise 

(Distribution) Act, 1979. 

(2) It shall be deemed to have come into force on the 1st day of April, 1979. 
2[2.  Definition.—In  this  Act,  the  expression  “distributable  Union  duties  of  excise”  means  3[forty-
seven and a half per cent.] of the net proceeds of Union duties of excise, levied and collected under the 
Central Excises and Salt Act, 1944 (1 of 1944) and any other law for the levy and collection of such duty, 
unless the law earmarks the proceeds of the duty for any special purpose. 

Explanation.—The expression “net proceeds” has the same meaning as in clause (1) of article 279 of 

the Constitution. 

4[3.Payment to States of sums equivalent to a part of the net proceeds of Union duties of excise 
and  distribution  of  sums  among  them.—During  the  financial  year  commencing  on  the 1stday  of 
April, 1995,and each of the four succeeding financial years, there shall be paid, out of the Consolidated 
Fund  of  India,  to  the  States,  sums  equivalent  to  the  distributable  Union  duties  of  excise  levied  and 
collected in that year and,— 

(a)sixteen-nineteenth of the sums so payable during each such financial year shall be distributed to 
each of the States specified in column (1)of Table I below in such percentage as is set out against it in 
column (2)thereof; and 

(b)three-nineteenth of the sums so payable during each such financial year shallbe distributed to each 
of the States specified in column (1)of Table II below in such percentage as is set out against it in column 
(2)thereof with respect to that financial year:— 

TABLEI 

State 

(1) 

Andhra Pradesh 

Arunachal Pradesh 

Assam 

Bihar 

Goa 

Gujarat 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

Percentage 

(2) 

8.465 

0.170 

2.784 

12.861 

0.180 

4.046 

1. Subs. by Act 31 of 1995, s. 2, for “second report dated the 18th day of December, 1989” (w.e.f. 1-4-1995). 
2. Subs. by Act 17 of 1989, s. 3, for sections 2 and 3 (w.e.f. 1-4-1989). 
3. Subs. by Act 31 of 1995, s. 3, for “forty-five per cent.” (w.e.f. 1-4-1995). 
4. Subs. by s. 4, ibid., for section 3 (w.e.f. 1-4-1995). 

2 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
                                                           
. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

(1) 

Haryana 

Himachal Pradesh 

Jammu and Kashmir 

Karnataka 

Kerala 

Madhya Pradesh 

Maharashtra 

Manipur 

Meghalaya 

Mizoram 

Nagaland 

Orissa 

Punjab 

Rajasthan 

Sikkim 

Tamil Nadu 

Tripura 

Uttar Pradesh 

West Bengal 

State 

(1) 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

. 

TABLEII 

Financial year and percentage   

(2)  

(2) 

1.238 

0.704 

1.097 

5.339 

3.875 

8.290 

6.126 

0.282 

0.283 

0.149 

0.181 

4.495 

1.461 

5.551 

0.126 

6.637 

0.378 

17.811 

7.471 

1995-96 

1996-97 

1997-98 

1998-99 

1999-2000 

Andhra Pradesh 

12.069 

Arunachal Pradesh 

3.410 

Assam 

Bihar 

Goa 

Himachal Pradesh 

8.543 

6.434 

0.973 

8.816 

Jammu and Kashmir  13.366 

Manipur 

Meghalaya 

Mizoram 

3.930 

3.590 

3.676 

0.000 

6.224 

10.748 

0.000 

0.917 

14.230 

22.741 

6.917 

5.994 

6.784 

0.000 

6.667 

9.290 

0.000 

0.604 

14.338 

23.700 

7.348 

6.130 

7.074 

7.988 

4.300 

9.836 

2.965 

1.058 

10.744 

16.491 

4.891 

4.403 

4.628 

0.000 

5.871 

11.849 

0.000 

1.161 

14.057 

21.985 

6.602 

5.815 

6.278 

3 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) 

Nagaland 

Orissa 

Rajasthan 

Sikkim 

Tripura 

5.818 

4.815 

0.835 

1.199 

5.465 

7.417 

5.248 

0.000 

1.473 

6.807 

Uttar Pradesh 

17.061 

11.751 

(2) 

10.247 

11.072 

12.025 

4.934 

0.000 

1.938 

9.263 

0.000 

2.773 

0.000 

1.982 

 9.618 

0.000 

0.680 

0.000 

2.055 

10.089 

0.000.]] 

4. Payment to be charged on the Consolidated Fund of India.—The expenditure on the payments 

in pursuance of section 3 shall be charged on the Consolidated Fund of India. 

5. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 
make rules providing for the time at which and the manner in which, any payments under this Act are to 
be  made,  for 
the  making  of  adjustments  between  one  financial  year  andanother and  for 
any other incidental or ancillary matters. 

(2) Every rule made under this section shall be laid, as soon as may be after it is made, before each 
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in 
one session or in two or more successive sessions, and if, before the expiry of the session immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 
in such modified form or be of no effect, as the case may be; so, however, that any such modification of 
annulment shall be without prejudice to the validity of anything previously done under that rule. 

6.  Repeal.—The  Union  Duties  of  Excise  (Distribution)  Act, 1962  (3  of  1962), shall,  as  from  the            

1st day of April, 1979 stand repealed. 

4 

 
 
 
 
 
  
 
